Textile exports contract 15pc to $16.5bn
ISLAMABAD: Pakistan’s exports of textiles and clothing contracted by 14.63 per cent year-on-year to $16.50 billion during the outgoing FY23 due to higher production costs, liquidity constraints and lower global demand.
Data released by the Pakistan Bureau of Statistics (PBS) on Tuesday showed that exports in June witnessed a year-on-year decline of 13.73pc to $1.47bn.
As a result of this decline in exports of textile and clothing, Pakistan’s total merchandise exports dipped by 12.71pc year-on-year to $27.54bn in 2022-23 from $31.78bn in the preceding fiscal year.
The textile export sector experienced a troubling trend of negative growth right from the beginning of the current fiscal year, except for a slight increase in August 2022 due to a backlog from the previous month.
The PBS data showed the exports of readymade garments shrank 10.57pc in value in FY23 but grew by 39.27pc in quantity, while knitwear dipped 13.36pc in value but grew 9.81pc in quantity, bedwear posted a negative growth of 18.26pc in value and 21.10pc in quantity.
However, towel exports slightly decreased by 10.05pc in value and 11.20pc in quantity, whereas those of cotton cloth dipped by 17.06pc in value and 23.86pc in quantity.
Among primary commodities, cotton yarn exports declined by 30.04pc, while yarn other than cotton by 31.85pc. The export of made-up articles — excluding towels — dipped by 18.44pc, and tents, canvas and tarpaulin went up by 24.93pc in FY23 from a year ago.
The import of textile machinery declined by 57.03pc in FY23 — a sign that expansion or modernisation projects were not a priority.
Furthermore, the import of raw cotton also dipped by 8.15pc in FY23 followed by a decline of 34.77pc in the import of synthetic fibre, 33.65pc in synthetic silk yarn and 14.56pc in worn clothing.
Petroleum imports tumble 27pc
Imports of the petroleum group dipped 27.03 per cent year-on-year in FY23 due to an economic slowdown that curtailed consumption amid unprecedented inflation.
At the same time, the local production and export of petroleum products also witnessed a declining trend.
In absolute terms, the total imports value of the petroleum group fell to $17.01bn in FY23 from $23.31bn in FY22.
Data compiled by the Pakistan Bureau of Statistics (PBS) showed the imports of petroleum products declined by 36.80pc in value during FY23 and 38.82pc in quantity. Import of crude oil decreased by 11.64pc in quantity while the value decreased by 15.84pc.
Similarly, liquefied natural gas (LNG) imports fell by 24.57pc during July-June FY23 on a year-on-year basis. This would have translated into relatively lower LNG-based power generation — a replacement for furnace oil.
On the other hand, liquefied petroleum gas (LPG) imports jumped 2.17pc due to domestic shortages. In June, total oil imports declined by 55.15pc to $1.63bn from $2.04bn in the same month last year.
Machinery arrivals
Machinery imports plunged 46.82pc to $5.80bn in FY23 from $10.92bn in FY22 mainly due to 64.35pc dip in arrivals of telecom equipment including mobile phones.
The import of mobile phones declined by over 71.19pc in FY23. Machinery imports of textile, office, power generating, agriculture and electrical appliances dipped.
The import of transport sector tumbled 60.52pc to $1.75bn against $4.45bn in FY22. The decline was seen in CBU vehicles as well as CKD because of lower local production of vehicles as the government has restricted the opening of letters of credit.
Published in Dawn, July 19th, 2023